Annual Business Responsibility Report

2018-19

In L ine with the National Voluntar y Guide l ines onSocia l, Env ironmenta l and Economic Responsib i l i t ies of Business

CORPORATE GOVERNANCEAnnuAl Business ResponsiBility RepoRt 2018-19

Section A: General Information About the Company

1. Corporate Identity Number (CIN) of the Company

L65920MH1994PLC080618

2. Name of the Company

HDFC Bank Limited

3. Registered Address

HDFC Bank House, Senapati Bapat Marg, Lower Parel, Mumbai - 400013

4. Website

www.hdfcbank.com

5. E-mail id

investors.helpdesk@hdfcbank.com

6. Financial Year Reported

FY 2018-19

7. Sector(s) that the Company is engaged in (industrial activity code-wise)

64191

8. List three key products/services that the Company manufactures/provides

1) Working Capital Loans

2) Auto Loans

3) Personal Loans

4) Credit Cards

9. Total number of locations where business activity is undertaken by the Company

i. Number of International Locations (Provide details of major 5)

Overseas branches in Bahrain, Hong Kong, Dubai International

Finance Centre

Representative offices in Abu Dhabi, Dubai and Nairobi

The Bank has a presence in the International Financial Service centre at GIFT City, Gandhinagar, Gujarat which is akin to a foreign branch.

1

HDFC Bank Limited Annual Business Responsibility Report 2018-19

AnnuAl Business ResponsiBility RepoRt 2018-19ii. Number of National Locations

As of March 31, 2019, the Bank had a nationwide distribution network:

• 5103bankingoutlets

• 13,160ATM’sin2,748cities/towns.

10. Markets served by the Company - Local/State/National/International

All

Section B: Financial Details of the Company

1. Paid up Capital (INR)

`5,45,00,88,276(Asof30thApril2019)

2. Total Turnover (INR)

`116,597.9crore

3. Total profit after taxes (INR)

`21,078.1crore

4. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%)

`444Crore(2percentoftheaverageNetProfitoftheprecedingthreeyears)

5. List of activities in which expenditure in 4 above has been incurred

a. Education

b. Skill Training and Livelihood Enhancement

c. Healthcare

d. Environmental Sustainability

e. Rural Development

Section C: Other Details

1. Does the Company have any Subsidiary Company/ Companies?

Yes

2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the

number of such subsidiary company(s)

No. The subsidiary companies do not participate in the BR initiatives of HDFC Bank.

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR

initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%, 30-60%, More than

60%]

No

2

CORPORATE GOVERNANCEAnnuAl Business ResponsiBility RepoRt 2018-19

Section D: BR Information

1. Details of Director/Directors responsible for BR

a) Details of the Director/Director responsible for implementation of the BR policy/policies

DIN Number (if applicable) 02490648

Name Kaizad Bharucha

Designation Executive Director, HDFC Bank

b) Details of the BR head

DIN Number (if applicable) Not Applicable

Name Nusrat Pathan

Designation Head, Corporate Social Responsibility

Telephone number 02230751040

e-mail ID nusrat.pathan@hdfcbank.com

1. Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)

The 9 principles outlined in the National Voluntary Guidelines are as follows:

P1 TheBank’sguidelinesonanti-briberyandanti-corruption,transparencyandethicalbehaviourformapartofourCodeofConductandEthicsManual.

P2 The Bank has an Environment Policy in place. The policy emphasizes on sustainable procurement practices and promoting energy efficiency in its operations. Also, considering the nature of our business, this principle has limited applicability for the sector.

P3 TheBank’sCodeofConductandEthicsManualdetailspoliciesforEqualOpportunityandProhibitionofSexualHarassmentattheworkplace.The Bank also has a Policy on Sexual Harassment.

P4 The Bank adheres to the RBI guidelines on Priority Sector Lending and Financial Inclusion, which are aimed at marginalised and vulnerable stakeholders. The Bank does not have a specific policy to address this principle.

P5 TheBank’sCodeofConductandEthicsManualdetailsapolicyonRespectforHumanRights,whichadherestotheprinciplesintheUnitedNations'UniversalDeclarationofHumanRights.

P6 The Bank has instituted an Environment Policy that incorporates elements of environmental performance, risk assessment & monitoring and governance&implementation.TheSocialandEnvironmentalManagementSystem(SEMS)screensandmonitorsloanstoidentifyassociatedsocial and environmental risks. As part of its Code of Conduct and Ethics Manual, the Bank encourages its employees to avoid natural resource wastage and be committed to safeguarding the environment.

P7 The Bank does not take part in any lobbying or policy advocacy.

P8 The Bank has a CSR policy which guides all its CSR activities and includes activities that it undertakes for marginalized and vulnerable stakeholders. Whilethereisnoformalpolicyinplacespecificallyforequitablegrowthanddevelopment,theBank’sflagshipSustainableLivelihoodInitiative(SLI)aims at achieving this objective.

P9 TheBank’sCodeofConductandEthicsManualdetailspoliciestoensureprivacyandconfidentialityofcustomers'data,toprovideproductsandserviceswhichoffervalueintermsofpriceandqualityandmeettheapplicablestandards/guidelinesasdecidedbytheregulatorandotherauthorities and to provide reliable and meaningful information without making exaggerated claims about its products and services. The policies addressing this principle include the Customer Compensation Policy, Grievance Redressal Policy, and the Customer Acceptance, Customer Care and Customer Severance Policy.

3

HDFC Bank Limited Annual Business Responsibility Report 2018-19

AnnuAl Business ResponsiBility RepoRt 2018-19

Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

Do you have policies for? Y Y Y Y Y Y Y Y Y

Has the policy been formulated in consultation with the relevant stakeholders?

Y Y Y Y Y Y Y Y Y

Doesthepolicyconformtoanynational/international standards? If yes, specify?

Y# Y# Y# Y# Y# Y# Y# Y# Y#

Is it a Board approved policy? Y Y Y Y Y Y Y Y Y

Ifyes,hasitbeensignedbyMD/owner/CEO/appropriateBoardDirector?

Y Y Y Y Y Y Y Y Y

Does the Company have a specified committeeoftheBoard/Director/Officialto oversee the implementation of the policy?

Y Y Y Y Y Y Y Y Y

Indicate the link for the policy to be viewed online

Note 1 Note 4 Note 1 Note 1 Note 1 Note 4 Note 1 Note 3 Note 2

Has the policy been formally communicated to all relevant internal and external stakeholders?

Y Y Y Y Y Y Y Y Y

Does the company have an in-house structure to implement the policy?

Y Y Y Y Y Y Y Y Y

Does the Company have a grievance redressal mechanism related to the policy to address stakeholders' grievances related to the policy?

Y - Y - Y - - Y

Has the company carried out independent audit/evaluationoftheworkingofthispolicy by an internal or external agency?

Y* - Y* - Y* - - Y* Y*

Web-link for the policy:

# All policies have been developed as a result of detailed consultations and research on the best practices adopted by banks and organisations

acrosstheindustry,andaspertherequirementsofHDFCBank.

* All policies of the Bank are evaluated internally

Note 1: These policies of the Bank are internal documents and are not accessible to the public.

Note2:http://www.hdfcbank.com/personal/customer-centre(CorporateCommitment)

Note3:https://www.hdfcbank.com/csr/pdf/CSR_Policy.pdf

Note4:https://www.hdfcbank.com/assets/pdf/Environment-Policy-Final.pdf

2a. If answer to S. No. 1 of the annexure against any principle, is ‘No’, the reasons for the same have also been mentioned therein.

3. Governance Related to BR

The Board ensures Business Responsibility at the Bank and comprises of 10 directors, of which 2 are Executive Directors, 2 are Non-

executive Directors and the remaining 6 are Independent Directors.

4. Indicate the frequency with which the Board of Directors, Committee of the Board or CEO assess the BR performance of the

Company. Within 3 months, 3-6 months, Annually, More than 1 year

TheBoardofDirectorsannuallyassesstheperformanceoftheBank’sBusinessResponsibility.

4

CORPORATE GOVERNANCEAnnuAl Business ResponsiBility RepoRt 2018-195. Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published?

Yes.ThebelowmentionedisthelinkforviewingtheSustainabilityReportforFY2017-18.

https://www.hdfcbank.com/assets/pdf/HDFC_Bank_Sustainability_Report_17-18.pdf

Section E: Principle-wise Performance

Principle 1: Ethics, Transparency and Accountability

1. Does the policy relating to ethics, bribery and corruption cover only the company?

HDFC Bank adopts the highest governance standards to ensure protection of all stakeholder interests. All the employees are expected to

adheretotheethicalprinciplesdetailedout inTheBank’sCodeofConductandEthics.Thecodeencompassesaspectsrelatedbutnot

limited to ethics, accountability, conflict of interest, bribery and corruption and is applicable to all the employees of the Bank.

2. Does it extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs /Others?

Yes

3. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily

resolved by the management?

No Shareholder complaints with respect to human rights, ethics, bribery and corruption were received by the Bank in FY 18-19.

Principle 2: Sustainable Products and Services

1. List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or

opportunities.

One of the core values of HDFC Bank is Sustainability. The Bank regards climate change mitigation and environmental conservation as

essential elements of a sustainable business. The Bank has introduced multiple user interfaces for its customers such as internet banking,

phone banking, ATMs etc. The Bank encourages the use of electronic media over print communication and encourages its retail customers

to subscribe to e-statements. Below products of the Bank incorporate Social and Environmental concerns.

a. Easing Cash Flow for Dairy Farmers:Multi-function Terminals (MFTs),popularly knownasMilk-to-MoneyATMs,aredeployed in

dairy societies.TheMFTs link themilkprocurementsystemof thedairy society to the farmers’account toenable fasterpayments.

Thetransparencyinthemilkcollectionprocess,includingthequalityofmilk,benefitsbothfarmersandsociety.

b. Taking Banking to the Unbanked:53percentoftheBank’soutletsarelocatedinruralandsemi-urbanareas.ThePradhanMantri

JanDhanYojana(PMJDY)andPradhanMantriMudraYojana(PMMY)ensurethattheunder-bankedsectionofthepopulationisbrought

into formal financial channels.

c. Digital 2.0: Digitisation at the Bank has largely helped reduce paper consumption. The Bank has embarked on its Digital 2.0 journey

that will bring about cost and process efficiency through automation. The key elements of the Digital 2.0 strategy are A) Reimagined

Net and Mobile Banking Experience B) Digital Marketing, Analytics and Digital Origination C) Digital Innovations D) API and Virtual

Relationship Manager.

d. Sustainable Livelihood Initiative: The Programme entails skill training, livelihood financing and creating market linkages to empower

women to rise out of poverty. The objective of the initiative is to create sustainable communities. The programme empowers women

through self-help groups or joint liability groups and helping them break the vicious circle of poverty.

5

HDFC Bank Limited Annual Business Responsibility Report 2018-19

AnnuAl Business ResponsiBility RepoRt 2018-192. For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of

product (optional):

Not Applicable.

3. Does the company have procedures in place for sustainable sourcing (including transportation)?

BeingintheFinancialServicessector,materialpurchaseforoperationsisnotsignificantexceptforpaper.Forprocurementofequipment,

theBankensuresthatenergyefficiencystandardsareconsideredduringthepurchaseofelectronicequipmentsuchascomputers,laptops,

lighting devices, ACs etc.

4. Has the company taken any steps to procure goods and services from local and small producers, including communities

surrounding their place of work?

Procurement of products and services from local suppliers is given preference by the Bank, while taking their relevant geography and

footprint into consideration.

5. If yes, what steps have been taken to improve their capacity and capability of local and small vendors?

No. This is not applicable to the type of suppliers the Bank engages with.

6. Does the company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of products

and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.

TheBankhaslimitedscopeforusingrecycledmaterialasprocessedinputs.ThewastegeneratedbytheBankisprimarilye-waste(fore.g.

computers,monitors,modems,switches,laptops,scanners,routers,printers,andUPSsystems).About220Tonnesofe-wastegenerated

was disposed through authorized recyclers. Waste water in select regional offices are recycled through a sewage treatment plant prior to

being released into the municipal sewer system.

Principle 3: Employee Well Being

1. Total number of employees.

The total number of employees of HDFC Bank is 98,061

2. Total number of employees hired on temporary/contractual/casual basis.

Thetotalnumberemployeeshiredontemporary/contractual/casualbasisisNIL.

3. Number of permanent women employees.

Thetotalnumberofpermanentwomenemployeesis17,860

4. Number of permanent employees with disabilities

HDFC Bank is a fair employer and does not discriminate amongst its employees. Therefore, the Bank does not track this information.

5. Do you have an employee association that is recognised by management?

Yes, there is an employee association that is recognized by the management.

6. What percentage of your permanent employees is members of this recognized employee association?

About0.27%permanentemployeesoftheBankaremembersofthisassociation.

6

CORPORATE GOVERNANCEAnnuAl Business ResponsiBility RepoRt 2018-197. Please indicate the number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the

last financial year and pending, as on the end of the financial year.

The total number of cases of POSH registered in FY 2018-19 is 25, of which 4 cases are pending. There is an internal complaints committee

at the Bank, to address cases related to sexual harassment at the Bank.

8. What percentage of your under mentioned employees were given safety and skill up-gradation training in the last year?

95.17%oftheBank’semployeeshavebeencoveredthroughtheBank’sextensivesetoftrainingprogrammesdeliveredthroughclassroom

and e-learning modules in FY 2018-19.

Principle 4: Valuing Marginalised Stakeholders

1. Has the company mapped its internal and external stakeholders?

Yes. Stakeholder relationships are imperative to HDFC Bank. The Bank engages with its stakeholders through formal and informal channels

onvariousplatforms.InternalandexternalkeystakeholdersoftheBankareidentified,whichincludeShareholders/Investors,Customers,

Employees, Community and Regulatory Bodies. Regular and planned engagements are conducted with all the identified stakeholder

groups.TheSustainabilityReport2017-18hasdetailedinformationonthesame.

2. Out of the above, has the company identified the disadvantaged, vulnerable & marginalised stakeholders?

Yes. The Bank has identified women, people with disabilities, children, youth, farmer communities, as its disadvantaged, vulnerable and

marginalized stakeholders.

3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable and marginalized

stakeholders?

For easy access to people with disabilities, the Bank has about 490 ramps across its branches and offices. Through Parivartan, the Bank

drives holistic growth of communities bringing about social and economic empowerment.

The rural and inclusive banking initiatives help the Bank engage with the marginalized sections of the society by imparting financial literacy

and establish financial inclusion through its specialized products. Through Parivartan, the Bank undertakes various initiatives in the field of

rural development, skill training and livelihood enhancement, education, healthcare and hygiene in addition to financial literacy and inclusion.

Principle 5: Human Rights

1. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/ Suppliers/

Contractors/NGOs/Others?

No,thepolicyofHumanRightsisonlylimitedtoHDFCBankanddoesnotextendtotheGroup/JointVentures/Suppliers/Contractors

/NGOs/Others.

2. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved

by the management?

There were no complaints received by the Bank specific to human rights violation, from its stakeholders.

Principle 6: Environment

1. Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/Contractors/

NGOs/others?

No, it’s applicability is limited only to HDFC Bank and does not extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/others.

7

HDFC Bank Limited Annual Business Responsibility Report 2018-19

AnnuAl Business ResponsiBility RepoRt 2018-192. Does the company have strategies/ initiatives to address global environmental issues such as climate change, global warming, etc.?

The Bank realizes the importance of environmental issues such as climate change, global warming and the impact it has on business in the

long term. In this regard, the Bank has been measuring its carbon footprint. The Bank also discloses its environmental information in the

Annual Sustainability Report.

3. Does the company identify and assess potential environmental risks?

The Bank identifies and assesses its potential environmental risks associated with its operations and business. The Bank has a Social and

EnvironmentalManagementSystem(SEMS)forscreeninglargeloansfortheirsocialandenvironmentalrisk/impact.

The Bank also has an Environment Policy in place. This policy will serve as a framework for understanding and managing the environmental

risks, impacts and opportunities. The policy incorporates elements of environmental performance, risk assessment & monitoring and

governance & implementation.

4. Does the company have any project related to Clean Development Mechanism?

No

5. Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy, etc. Y/N.

Yes, HDFC Bank has undertaken initiatives on clean technology, energy efficiency and renewable energy.

• Automated IOTbasedEnergyManagementModulehasbeenextended toadditional500selectbranches (totalnow600Branches

under IOT).

• CollocationofATMandServerRoomtoreducenumberofindividualair-conditioningunits.

• CapacitorBanksarebeinginstalledinallpremises.

• VRF/VRVAC'sareprovidedinsteadofconventionalAC'sinallnewbackoffices.FurtherinBranches,weareinstallinginverterbased

star rated AC's as per BEE standards.

• Monitoringofair-conditionersetpointtemperaturesforenergyoptimisation

• OccupancysensorsarebeinginstalledinnewBackOffices.

• LEDlightsarebeinginstalledinplaceofconventionalCFL/Fluorescentfittings.

• LithiumIonbasedinvertersystemshavebeenpilotedinafewbranches,oreplacetheDGsets.

• BuildingManagementSystemshavebeeninstalledatsomeofourlargeofficesinMumbaiandBhubaneswar.

• TheBankhastwoLEEDcertifiedBuildingsinMumbaiandBhubaneswar

• TheBanksupplementsgridpowerwithrenewableenergybymeansofsolarpanelsinstalledattheBank’sofficesinNoida,Puneand

Bhubaneswar.

6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year

being reported?

Not Applicable

7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end

of Financial Year.

Not Applicable

8

CORPORATE GOVERNANCEAnnuAl Business ResponsiBility RepoRt 2018-19Principle 7: Policy Advocacy

1. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that your business

deals with:

TheBank is amember of IndianBanks’Association (IBA), but it does not engage in policy advocacy. TheBank is actively involved in

consultation/discussionforumswiththegovernmentandotherbodiesinthebankingindustryintakingpublicpolicypositions,butithas

not lobbied through any association.

2. Have you advocated/lobbied through above associations for the advancement or improvement of public good?

Not Applicable

Principle 8: Inclusive Growth

1. Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8?

Yes. The Bank through Parivartan, endeavors to empower millions of people to be self-reliant and contribute to the growth of the nation.

Community development initiatives of the Bank are driven by the ideology of giving back to the society in a meaningful way. Various

programmes/initiatives/projects conducted under the gamut of Parivartan related to financial literacy and inclusion, rural development,

promoting education, Skill Training, Livelihood Enhancement and Healthcare & Hygiene support inclusive growth.

2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/government structures/any

other organisation?

Projects are undertaken through in-house-team and external NGO's

3. Have you done any impact assessment of your initiative?

Yes. The Bank carries out impact assessment for all of its programs. Parivartan aims to inspire people and empower communities at a

nation-wide level. TheBank’s reachand impact from its social initiativeswill bedetailed in theSustainabilityReport. Further, theBank

will create an Integrated Report, which will highlight such initiatives, based on the principles enunciated by the International Integrated

Reporting Council. The Integrated Report would be hosted on the website of the Bank in due course.

4. What is your company’s direct contribution to community development projects-amount in INR and the details of the projects

undertaken?

In FY 2018-19 the Bank has spent `444Crore(2percentoftheaverageNetProfitoftheprecedingthreeyears)oncommunitydevelopment

initiatives.

The Bank conducts its CSR initiative in alignment with its core areas of focus.

For more details kindly refer Annexure 2 in the Directors Report.

5. Have you taken steps to ensure that this community development initiative is successfully adopted by the community?

The Bank continuously assesses and monitors the impact of its initiatives. The Bank ensures that the projects that it undertakes, have

complete participation and support from the community, thus ensuring that they are sustainable and generate the necessary impact.

9

HDFC Bank Limited Annual Business Responsibility Report 2018-19

AnnuAl Business ResponsiBility RepoRt 2018-19Principle 9: Customer Welfare

1. What percentage of customer complaints/consumer cases are pending as on the end of financial year?

1.92%ofthetotalcustomercomplaintsreceivedbytheBank,arependingason31stMarch2019(Therearenilcomplaintspendingbeyond

TAT).

2. Does the company display product information on the product label, over and above what is mandated as per local laws?

TheBankdisplaysthedetailsofitsfinancialproductsonthewebsiteandalsousestheprintmediatospreadawareness(throughpamphlets

and brochures). It also has presence on various social media platforms such as Facebook and Twitter to display the features of the products

and services offered. The Bank ensures customers are empowered to make informed choices by providing details of the products and

services in a transparent manner. It has also taken up multiple initiatives to improve customer awareness and financial literacy.

3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsible advertising and/

or anti-competitive behaviour during the last five years and pending as of end of financial year

No

4. Did your company carry out any consumer survey/consumer satisfaction trends?

The Bank conducts regular surveys to measure and analyse the satisfaction levels of customers with respect to its products and services.

10

A N N U A L B U S I N E S S R E S P O N S I B I L I T Y R E P O R T

2 0 1 8 - 2 0 1 9